TMI Blog2016 (2) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of transport or buyers of such unaccounted final product. Though it is not feasible to have evidences on all the above aspects, it is certainly required to have at least a few corroborative evidence to assert clandestine receipt of raw material, manufacture and clandestine removal of dutiable final products. In the present case such evidences are completely lacking. It is relevant to note that the learned Commissioner (Appeals) set aside the penalty imposed on Shri Drolia on the ground that he has joined the company as Director on 01/7/2008 and as such was not involved in the clandestine removal that happened during November 2007 to April 2008. There is element of contradiction here to the extent that while admitting that Shri Drolia was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty on the appellants and also a penalty of ₹ 25,000/- on Shri Sumit Drolia, Director of the appellant. On appeal, the Commissioner (Appeals) vide the impugned order upheld the findings of the Original Authority, but set aside the penalty on Shri Drolia. Aggrieved by this order, the present appeal is filed by the appellant. 2. The learned Counsel for the appellant submitted that: (a) the whole case of non-payment of Central Excise duty on the total quantity of 70.349 MT of re-rolled products is based on presumptions with no evidence; (b) based on certain enquiry in the premises of M/s Shri Sita Ispat and Power Pvt. Ltd. the officers proceeded to allege unaccounted receipt of 79.610 MT of Sponge Iron and thereafter calculated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted sponge iron by M/s Shri Sita Ispat and Power Pvt. Ltd. to the appellant based on parallel invoice would indicate clandestine activity by the appellant. 4. Heard both the sides and examined the appeal records. The whole case of demand of excise duty on unaccounted, clandestine removal of re-rolled products of iron/steel was based on recovery of certain documents at the raw material supplier's end and statement of the Director of the appellant. No other verification, including the verification at the appellant's premises has been made during the investigation. There is absolutely no corroboration relating to transportation of unaccounted sponge iron, payment of amount, manufacture of MS Ingots out of sponge iron and further man ..... X X X X Extracts X X X X X X X X Extracts X X X X
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